Summary: Vivos Therapeutics reported a 17% increase in Q3 2024 revenue and a 27% reduction in operating loss, driven by its focus on cost-cutting and strategic milestones, including FDA 510(k) clearance for its oral device to treat pediatric sleep apnea. The company also received new CPT medical codes, which are expected to enhance market reach. Vivos continues to expand its marketing model with sleep specialists, aiming for positive cash flow by mid-2025 and further growth through partnerships and increased use of its patented sleep treatment devices.
Key Takeaways:
- Significant Milestones: Vivos recently received FDA clearance for its pediatric sleep apnea device and new CPT codes.
- Financial Improvements: The company achieved a 17% revenue increase and reduced its operating loss by 27% year-over-year.
- Strategic Expansion: Vivos is expanding its alliances with medical sleep specialists to boost growth and revenue in 2025.
Vivos Therapeutics reported a 17% increase in third-quarter revenue and a 27% reduction in operating loss, driven by cost-cutting measures and recent milestones, including US Food and Drug Administration (FDA) clearance for its oral device to treat pediatric sleep apnea.
Kirk Huntsman, Vivos’ chairman and chief executive officer, says in a release, “Today, we reported a 17% increase in third-quarter topline revenue as we leverage our proprietary technology and treatment protocols, which offer highly effective treatment alternatives for OSA patients. Our third-quarter results mark the ninth consecutive quarter of year-over-year decreases in operating expenses as we continue to focus on costs as we seek to grow revenue.
“During the quarter and more recently, we also achieved important milestones to strengthen the foundation for future growth, notably a key FDA clearance for use of our devices in children and the issuance of new insurance codes covering our devices.”
As of Sept 30, patients treated with Vivos’ patented oral appliances totaled over 47,000 worldwide, compared to over 40,000 the year prior. Vivos has also trained more than 2,000 dentists in the use of The Vivos Method and Vivos’ related value-added services, compared to approximately 1,850 as of September 30, 2023.
Revenue Up in Q3
Revenue was $3.9 million for the third quarter of 2024 and $11.3 million for the nine months ended Sept 30, compared to $3.3 million and $10.6 million for the three and nine months ended Sept 30, 2023, respectively.
Vivos’ cost-cutting initiatives also led to a $1 million or 27% year-over-year reduction in operating loss, versus the third quarter of 2023. For the nine months ended Sept 30, operating loss decreased by $4.8 million or 36%, compared to the same period in 2023. Vivos anticipates attaining positive cash flow from operations by mid-2025.
In September, Vivos announced the closing of a $4.3 million registered direct equity offering, improving cash on hand, working capital, and stockholders’ equity. As of Sept 30, cash and cash equivalents were $6.3 million while stockholders’ equity was $7.7 million.
Key Highlights for the Quarter
In September, Vivos announced receipt of the first-ever US Food and Drug Administration (FDA) 510(k) clearance to treat moderate to severe OSA and snoring in children ages 6 to 17 using Vivos’ proprietary flagship oral medical device.
Additionally, in October, the American Medical Association issued new CPT medical codes applicable to all Vivos CARE oral medical devices, which will become effective Jan 1.
Huntsman notes in the release that the company’s new marketing and distribution model announced in June, which leverages contractual alliances with medical sleep specialists, continues to show promise in its early stages.
“As we previously anticipated, revenues from this new model were not material in the third quarter, although we have seen enough to date to warrant expanding the program to two additional locations in Colorado, which we expect to have operational by the end of 2024 or very early in 2025,” he says in a release. “We are also in discussions to expand the model through similar alliances with other medical sleep providers, and we expect to continue to refine the model as it rolls out based on our experiences. As we continue to move more directly and vertically into affiliations and collaborations with medical specialists, functional medicine doctors, and other sleep-related healthcare practitioners, we expect this to positively impact our new case starts, revenue growth, and gross profit in 2025.”
Photo caption: Vivos’ mmRNA oral appliance
File photo/Vivos Therapeutics
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